Renting out Australian property whilst living in the UK
#1
Just Joined
Thread Starter
Joined: Oct 2002
Posts: 9
Renting out Australian property whilst living in the UK
My partner and I are moving back to London soon (JAN 09). We have owned and living in our Sydney unit for 1yr and have 21 yrs of a 30yr mortgage to pay off.
We want to keep it as we convinced it will only go up in value over the years.
My question is what are the tax implications of renting out our property whilst living in London? E.g - Do we pay tax on the $550 rental income p/w and if so, can we still claim deductions back on this taxable income (even though we'll be outside Oz and or only Aussie income will be the rent) and/or also carry forward any additional deductions whilst outside of Oz for when we move back in "X" amount of yrs (maybe 5-15yrs, maybe never, maybe we'll just sell it in 10 yrs)?
We will have around $500 excess to pay each wk to cover mortgage and other costs....
Cheers.
We want to keep it as we convinced it will only go up in value over the years.
My question is what are the tax implications of renting out our property whilst living in London? E.g - Do we pay tax on the $550 rental income p/w and if so, can we still claim deductions back on this taxable income (even though we'll be outside Oz and or only Aussie income will be the rent) and/or also carry forward any additional deductions whilst outside of Oz for when we move back in "X" amount of yrs (maybe 5-15yrs, maybe never, maybe we'll just sell it in 10 yrs)?
We will have around $500 excess to pay each wk to cover mortgage and other costs....
Cheers.
#2
Homeward Bound
Joined: Apr 2003
Posts: 435
Re: Renting out Australian property whilst living in the UK
My partner and I are moving back to London soon (JAN 09). We have owned and living in our Sydney unit for 1yr and have 21 yrs of a 30yr mortgage to pay off.
We want to keep it as we convinced it will only go up in value over the years.
My question is what are the tax implications of renting out our property whilst living in London? E.g - Do we pay tax on the $550 rental income p/w and if so, can we still claim deductions back on this taxable income (even though we'll be outside Oz and or only Aussie income will be the rent) and/or also carry forward any additional deductions whilst outside of Oz for when we move back in "X" amount of yrs (maybe 5-15yrs, maybe never, maybe we'll just sell it in 10 yrs)?
We will have around $500 excess to pay each wk to cover mortgage and other costs....
Cheers.
We want to keep it as we convinced it will only go up in value over the years.
My question is what are the tax implications of renting out our property whilst living in London? E.g - Do we pay tax on the $550 rental income p/w and if so, can we still claim deductions back on this taxable income (even though we'll be outside Oz and or only Aussie income will be the rent) and/or also carry forward any additional deductions whilst outside of Oz for when we move back in "X" amount of yrs (maybe 5-15yrs, maybe never, maybe we'll just sell it in 10 yrs)?
We will have around $500 excess to pay each wk to cover mortgage and other costs....
Cheers.
Bear in mind that in order to avoid having to pay CGT if and when you do sell you would have to maintain that this is your principal residence. That means living in it once every 6 years. I am not sure how long you have to live in it for though! Hope that helps!
#3
Just Joined
Thread Starter
Joined: Oct 2002
Posts: 9
Re: Renting out Australian property whilst living in the UK
Great, thanks...... This is what i was thinking/hoping for!